Member Since: 20th Dec 2017
Anderton & Co. Accountants Limited
20th Dec 2017
So I have a number of clients who are tradesmen.
I have been asked similar questions about splitting the business from a commercial perspective because they believe that they are not competitive to residential customers if they have to charge VAT and the next person doesn't. Obviously residential customers cannot reclaim the VAT. Taking the example of an electrician is the following permitted:
Operating and invoicing as a Sole trader for residential customers but operating a limited company for Commercial business.
Note. Separate bank accounts, invoicing, business names, logos can be arranged. Even a separate head office and registered address.
The same as above, but the limited company is 50:50 owned with another family member or a friend.
Or, the same as the above, the limited company is 50:50 owned with another family member or friend and the limited company is VAT registered because it may be seen detrimental to Commercial businesses not to be VAT registered.